2) an increase of $36,200 in FY 2000 to increase top-level administrative salaries in the new Department;
3)
4)
5)
The JLBC Staff assumes the bill will transfer all funding in the Developmental Disabilities (DD) and Long Term Care (LTC)
cost centers of DES to the new department. In FY 1999 this amount is estimated to total $285,648,000, or $51,485,900 in
the DD cost center and $234,162,100 in the LTC cost center. Of these amounts, $119,082,100 is General Fund monies and
$166,565,900 of Federal Title XIX funds and other related funds. Since the transfer is not effective until January 1, 2000,
the amount of funding transferred in FY 2000 will be half, or $142,824,000.
(Continued)
Assumptions
JLBC Staff assumes the new Department of Developmental Disabilities will remain in its current locations and either transfer
or contract for indirect administration such as central budget, personnel, or financial services. JLBC Staff assumes,
therefore, that the bill will transfer the funding in DES' Administration cost center associated with indirect administrative
costs such as rent and central budget office staff, though some of those staff members may remain DES employees. In FY
1999 this amount is estimated at $4,367,500 for the LTC cost center costs, or 1.87% of the amount spent in the LTC cost
center. Assuming that indirect administration for the DD cost center is allocated at the same percentage, JLBC Staff
estimates indirect administration for the DD cost center is 1.87% of $51,485,900, or $960,300. DES indicates that its cost
allocation for DD and LTC combined activities attributes 51.3% of costs to the General Fund and the rest to Federal Funds.
Of the total $5,327,800 spent on indirect administration, therefore, JLBC Staff would estimate 51.3% of that amount, or
$2,733,200, would be General Fund monies, and $2,594,600 would be Federal Funds. Since the transfer is not effective until
January 1, 2000, the amount of funding transferred in FY 2000 will be half, or $2,663,900.
JLBC Staff does not assume vocational rehabilitation and employment support services for developmentally disabled clients
will also be transferred since those programs are currently provided through the Division of Employment and Rehabilitation
Services as part of the Division's Rehabilitation Services Administration (RSA). The bill does not refer to services provided
by RSA.
JLBC Staff estimates it will cost an additional $36,200 ($18,600 GF and $17,600 Federal Funds) in FY 2000 and each year
afterward to increase the salaries and employee related expenditures of top-level administrators in the new Department. The
administrators will have additional responsibilities, such as being accountable directly to the Governor, and developing their
own budgets. For example, the current DES assistant director who leads the Division of Developmental Disabilities is
classified as a Grade 27 employee, while directors of agencies of sizes similar to the proposed Department such as the
Departments of Administration or Public Safety are generally classified as Grades 29 or 30.
JLBC Staff estimates that the new Department will need an additional 2 staff members to address the informational needs of
stakeholders. Although DES currently has public information and legislative liaison staff, the number of staff in each of
those categories is so small the amount attributable to developmental disabilities issues is less than one person, making it
difficult to transfer that person to the new Department. JLBC Staff does not believe the Department will want to contract for
such services with DES. Therefore, the Department will need its own public information officer and legislative liaisons.
JLBC Staff estimates these new positions will cost a total of $54,100 ($27,800 GF and $26,300 Federal Funds) in FY 2000.
This total includes $40,100 for 6 months of operational funding and $14,000 for one-time equipment costs. In FY 2001 and
beyond, these positions will cost $80,300 each year in total funds.
JLBC Staff estimates that it will cost an additional $150,000 ($77,000 GF and $73,000 Federal Funds) in one-time only costs
in FY 2000 to reprogram DES' computer systems. Federal regulations require would require modifications to DES' cost
allocation system in order to properly bill the new Department for any services that DES performs for the new Department.
JLBC Staff assumed that these changes would require approximately 3,000 hours of programming at an average contracted
cost of $50 per hour. DES also indicates that moving to a "direct charge" system of billing for its services will require some
of its employees to keep track of how much time they spend on services to the new Department, much as a lawyer tracks the
amount of time he or she spends on a particular client. JLBC Staff does not, however, estimate that this will entail additional
costs for DES.
JLBC Staff also estimates that DES will need an additional 2 staff members to address the additional financial and data
administration needs by contracting with DES. Since DES will need to administer new contracts for the administrative
services that it will provide to the new Department, JLBC Staff estimates that DES will need an additional Fiscal Services
Officer III. The new Department will continue to use ASSISTS, which is DES' computer system that coordinates services to
developmentally disabled clients. There will likely be changes, however, in how ASSISTS interacts with DES' central
processing unit regarding billing of administrative services. JLBC Staff estimates, therefore, that DES will also need an
additional Computer Operations Analyst II. JLBC Staff estimates these 2 new positions will cost a total of $85,300 ($43,800
GF and $41,500 Federal Funds) in FY 2000. This total includes $71,300 for a full year of operational funding, since these
positions will need to prepare for the new contract. This total also includes $14,000 for one-time equipment costs.
Local Government Impact
None 3/11/98
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